Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity Registrant Name | MILLER INDUSTRIES, INC. | ||
Entity File Number | 001-14124 | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 62-1566286 | ||
Entity Address, Address Line One | 8503 Hilltop Drive, | ||
Entity Address, City or Town | Ooltewah | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 8503 Hilltop Drive | ||
City Area Code | 423 | ||
Local Phone Number | 238-4171 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | MLR | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 389,950,795 | ||
Entity Common Stock Shares Outstanding | 11,445,640 | ||
Auditor Name | Elliott Davis | ||
Auditor Firm ID | 149 | ||
Auditor Location | Chattanooga, Tennessee | ||
Entity Central Index Key | 0000924822 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and temporary investments | $ 29,909 | $ 40,153 |
Accounts receivable, net of allowance for credit losses of $1,527 and $1,319 at December 31, 2023 and December 31, 2022, respectively | 286,138 | 177,663 |
Inventories, net | 189,807 | 153,656 |
Prepaid expenses | 4,617 | 4,576 |
Total current assets | 510,471 | 376,048 |
NONCURRENT ASSETS: | ||
Property, plant and equipment, net | 115,072 | 112,145 |
Right-of-use assets - operating leases | 826 | 909 |
Goodwill | 20,022 | 11,619 |
Other assets | 819 | 708 |
Total assets | 647,210 | 501,429 |
Current liabilities: | ||
Accounts payable | 191,782 | 125,500 |
Accrued liabilities | 40,793 | 28,333 |
Income taxes payable | 1,819 | 2,001 |
Current portion of operating lease obligation | 320 | 311 |
Total current liabilities | 234,714 | 156,145 |
NONCURRENT LIABILITIES: | ||
Long-term obligations | 60,000 | 45,000 |
Noncurrent portion of operating lease obligation | 506 | 597 |
Deferred income tax liabilities | 4,070 | 6,230 |
Total liabilities | 299,290 | 207,972 |
Shareholders' equity: | ||
Preferred shares, $0.01 par value: Authorized-5,000,000 shares , Issued-none | ||
Common shares, $0,01 par value: Authorized-100,000,000 shares, Issued-11,445,640 and 11,416,716 at December 31, 2023 and 2022, respectively | 114 | 114 |
Additional paid-in capital | 153,574 | 152,392 |
Retained Earnings | 200,165 | 150,124 |
Accumulated other comprehensive loss | (5,933) | (9,173) |
Total shareholders' equity | 347,920 | 293,457 |
Total liabilities and shareholders' equity | $ 647,210 | $ 501,429 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts (in dollars) | $ 1,527 | $ 1,319 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock Shares, Issued | 11,445,640 | 11,416,716 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Net sales | $ 1,153,354 | $ 848,456 | $ 717,476 |
Costs of operations | 1,001,500 | 766,037 | 647,624 |
Gross profit | 151,854 | 82,419 | 69,852 |
Operating expenses: | |||
Selling, general and administrative expenses | 73,087 | 52,827 | 46,233 |
Non-operating expenses: | |||
Interest expense, net | 5,974 | 3,379 | 1,355 |
Other (income) expense, net | (991) | 481 | 498 |
Total expense, net | 78,070 | 56,687 | 48,086 |
Income before income taxes | 73,784 | 25,732 | 21,766 |
Income tax provision | 15,493 | 5,386 | 5,511 |
Net income | $ 58,291 | $ 20,346 | $ 16,255 |
Basic income per common share (in dollars per share) | $ 5.10 | $ 1.78 | $ 1.42 |
Diluted income per common share (in dollars per share) | 5.07 | 1.78 | 1.42 |
Cash dividends declared per common share (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
Weighted average shares outstanding: | |||
Basic (in shares) | 11,438,965 | 11,416,667 | 11,410,728 |
Diluted (in shares) | 11,506,960 | 11,416,667 | 11,410,728 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 58,291 | $ 20,346 | $ 16,255 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 3,240 | (4,228) | (2,156) |
Total other comprehensive income (loss) | 3,240 | (4,228) | (2,156) |
Total comprehensive income | $ 61,531 | $ 16,118 | $ 14,099 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Gain (Loss) | Total |
Balances at Dec. 31, 2020 | $ 114 | $ 151,249 | $ 129,959 | $ (2,789) | $ 278,533 |
Balance (shares) at Dec. 31, 2020 | 11,405,468 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock to non-employee directors | 200 | 200 | |||
Issuance of common stock to non-employee directors (shares) | 5,260 | ||||
Dividends paid ($0.72) | (8,216) | (8,216) | |||
Foreign currency translation gain (loss) | (2,156) | (2,156) | |||
Net income | 16,255 | 16,255 | |||
Balances at Dec. 31, 2021 | $ 114 | 151,449 | 137,998 | (4,945) | 284,616 |
Balance (shares) at Dec. 31, 2021 | 11,410,728 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock to non-employee directors | 200 | 200 | |||
Issuance of common stock to non-employee directors (shares) | 5,988 | ||||
Stock-based compensation on nonvested restricted stock units | 743 | 743 | |||
Dividends paid ($0.72) | (8,220) | (8,220) | |||
Foreign currency translation gain (loss) | (4,228) | (4,228) | |||
Net income | 20,346 | 20,346 | |||
Balances at Dec. 31, 2022 | $ 114 | 152,392 | 150,124 | (9,173) | 293,457 |
Balance (shares) at Dec. 31, 2022 | 11,416,716 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock to non-employee directors | 123 | 123 | |||
Issuance of common stock to non-employee directors (shares) | 4,604 | ||||
Stock-based compensation on nonvested restricted stock units | 1,273 | 1,273 | |||
Shares withheld related to net share settlement | $ 24,320 | (214) | (214) | ||
Dividends paid ($0.72) | (8,250) | (8,250) | |||
Foreign currency translation gain (loss) | 3,240 | 3,240 | |||
Net income | 58,291 | 58,291 | |||
Balances at Dec. 31, 2023 | $ 114 | $ 153,574 | $ 200,165 | $ (5,933) | $ 347,920 |
Balance (shares) at Dec. 31, 2023 | 11,445,640 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||
Dividends paid (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 58,291 | $ 20,346 | $ 16,255 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 13,243 | 11,762 | 11,036 |
(Gain) Loss on disposal of property, plant and equipment | (251) | (53) | (38) |
Provision for credit losses | 203 | 174 | (137) |
Issuance of non-employee director shares | 123 | 200 | 200 |
Stock-based compensation | 1,059 | 743 | |
Deferred tax provision | (2,181) | 1,061 | 1,012 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (105,599) | (24,345) | (12,723) |
Inventories | (30,421) | (40,748) | (32,071) |
Prepaid expenses | 50 | 1,130 | (2,603) |
Other assets | 63 | 24 | 116 |
Accounts payable | 64,936 | 4,485 | 33,939 |
Accrued liabilities | 10,996 | 5,137 | 400 |
Income taxes payable | 451 | 929 | (118) |
Net cash flows from operating activities | 10,963 | (19,155) | 15,268 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (12,097) | (28,939) | (9,150) |
Proceeds from sale of property, plant and equipment | 398 | 8 | 91 |
Acquisition of business | (17,376) | ||
Net cash flows from investing activities | (29,075) | (28,931) | (9,059) |
Cash flows from financing activities: | |||
Net borrowings under credit facility | 15,000 | 45,000 | |
Payments of cash dividends | (8,249) | (8,220) | (8,216) |
Finance lease obligation payments | (15) | (22) | |
Net cash flows from financing activities | 6,751 | 36,765 | (8,238) |
Effect of exchange rate changes on cash and temporary investments | 1,117 | (2,858) | (1,160) |
Net change in cash and temporary investments | (10,244) | (14,179) | (3,189) |
Cash and temporary investments, beginning of period | 40,153 | 54,332 | 57,521 |
Cash and temporary investments, end of period | 29,909 | 40,153 | 54,332 |
Supplemental information: | |||
Cash payments for interest | 8,092 | 3,332 | 1,570 |
Cash payments for income taxes, net of refunds | $ 18,053 | $ 1,806 | $ 5,890 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Miller Industries, Inc., and subsidiaries (the “Company”) is The World’s Largest Manufacturer of Towing and Recovery Equipment. ® The principal markets for the Company’s towing and recovery equipment are approximately 74 distributor locations and the users of towing and recovery equipment located primarily throughout North America, and approximately 50 distributors that serve other foreign markets. The Company’s products are marketed under the brand names of Century ® , Vulcan ® , Chevron TM , Holmes ® , Challenger ® , Champion ® , Jige TM , Boniface TM , Titan ® and Eagle ® . Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States ("U.S.") and include the accounts of the Company and its wholly-owned subsidiaries. In the opinion of management, the consolidated financial statements include all adjustments necessary for the fair presentation of the Company's consolidated financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated. To facilitate timely reporting, the consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st by 31 days (or less). Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Significant estimates include: income tax accruals, the net realizable value of inventory, warranty accruals, allowance for expected credit losses, legal accruals, impairment testing to goodwill, other long-lived assets, stock-based compensation and valuations of the assets acquired and liabilities assumed in a business combination or asset acquisition, when applicable. Actual results could differ materially from those estimates. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment and other relevant factors, as applicable. Management adjusts such estimates and assumptions when facts and circumstances dictate. Reclassifications Certain prior period amounts have been reclassified for consistency with current period presentation. These reclassifications had no effect on the reported results. Specifically, we disaggregated accrued liabilities from other and reclassed financing lease cost. Additionally, we have separated stock-based compensation on the Consolidated Statement of Shareholders Equity. Cash and Temporary Investments Cash consists of deposits held at financial institutions. We consider liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value. Accounts Receivable and Allowance for Credit Losses Trade receivables are presented net of an allowance for doubtful accounts of $1.5 million and $1.3 million at December 31, 2023 and 2022, respectively. W e regularly monitor past due accounts and establish appropriate reserves to cover potential losses. Since the Company’s trade receivables are largely similar, the Company evaluates its allowance for credit losses as one portfolio segment. The allowance is estimated using a combination of factors including the age of receivable balances and historical credit loss experience, supplemented by the Company’s knowledge of customer specific information, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We write off any amounts deemed uncollectible against the established allowance for credit losses. For receivables not serviced through third-party floor plan financing arrangements, the company extends credit ranging in terms depending on product line, to customers in the normal course of business. For a rollforward of the allowance for credit losses, see “Schedule II – Valuation of Qualifying Accounts” contained herein. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and temporary investments and trade accounts receivable. Cash and temporary investments consist primarily of cash on deposit or short-term liquid investments with original contractual maturities of three months or less. At times, we have cash deposited with major financial institutions in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. We have not historically incurred any related losses. Our trade receivables are exposed to a concentration of credit risk with certain large customers. We perform regular credit evaluations of our customers’ financial conditions and maintain reserves for losses through the established allowance for doubtful accounts. Historically, such losses have been within our expectations. At December 31, 2023, there was no one customer with a trade account receivable of greater than 10.0% of the Company’s total trade receivables. At December 31, 2022, there was one customer with a trade account receivable of 10.6% of the Company’s total trade receivables. Refer to the "Accounts Receivables and Allowance for Credit Losses" policy within this Note for additional information on the accounting treatment of reserves for allowance for credit losses. Inventories, Net Inventory costs associated with the manufacturing of inventories include materials, labor and factory overhead. Inventories are valued at the lower of cost or net realizable value determined primarily on a moving average unit cost basis. Appropriate consideration is given to obsolescence, valuation and other factors in determining net realizable value. Net realizable value is the value of an asset that can be realized upon the sale of the asset, less a reasonable estimate of the costs associated with the sale of the asset. Significant variances in those estimates may require a revision to future inventory reserve estimates. Property, Plant and Equipment Property, plant and equipment are carried at cost less accumulated depreciation. Property, plant and equipment held for sale are recorded at the lower of cost less accumulated depreciation or fair value less any cost to sell. Fully depreciated assets are retained in property, plant and equipment and accumulated depreciation until they are removed from service. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the consolidated balance sheets and any resulting gain or loss from disposition is recorded as other (income) expense, net in the consolidated statements of income in the period realized. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. We capitalize project costs relating to computer software development when the activities related to the project reach the application stage and amortize those costs to expense on a straight-line basis over five years . Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred. Depreciation expense for financial reporting purposes is computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over 20 to 30 years , and machinery and equipment, furniture and fixtures and software costs are depreciated over 5 to 10 years . Expenditures for routine maintenance and repairs are charged to expense as incurred. Business Combinations Business combinations are accounted for under Accounting Standards Codification (“ASC”) 805, Business Combinations , using the acquisition method of accounting under which all acquired tangible and identifiable intangible assets and assumed liabilities and applicable noncontrolling interests are recognized at fair value as of the respective acquisition date, while the costs associated with the acquisition of a business are expensed as incurred. The company may refine the estimated fair values of assets acquired and liabilities assumed, if necessary, over a period not to exceed one year from the date of acquisition by taking into consideration new information about facts and circumstances that existed as of the acquisition date that, if known at the date of acquisition, would have affected the estimated fair values ascribed to the assets acquired and liabilities assumed. Net working capital adjustments related to the acquisitions are estimated as of the closing date and will be adjusted based on that estimate. Net working capital adjustments, if any, will be recorded in other assets on the consolidated balance sheet. During the measurement period, any purchase price allocation changes that impact the carrying value of goodwill would also affect the amount of goodwill impairment taken, if applicable. If necessary, purchase price allocation revisions that occur outside of the measurement period are recorded within cost of sales or selling, general and administrative expense within the consolidated statements of income depending on the nature of the adjustment. When an acquisition does not meet the definition of a business combination because either: (i) substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or group of similar identified assets, or (ii) the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, the company accounts for the acquisition as an asset acquisition. Goodwill Goodwill represents the excess of consideration transferred over the estimated fair value of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized. However, the Company reviews goodwill for impairment annually, during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate that an impairment may exist. In conducting our annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If factors indicate that the fair value of a reporting unit is less than its carrying amount, the Company performs a quantitative assessment and the fair value is determined by analyzing the expected present value of future cash flows. If the carrying value of a reporting unit continues to exceed its fair value, the fair value of goodwill is calculated and an impairment loss equal to the excess is recorded. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be fully recoverable. When a determination has been made that the carrying amount of long-lived assets may not be fully recovered, the amount of impairment is measured by comparing an asset’s estimated fair value to its carrying value. The determination of fair value is based on projected future cash flows discounted at a rate determined by management, or if available, independent appraisals or sales price negotiations. No impairment loss was recognized for long-lived assets during the years ended December 31, 2023 and 2022, respectively. The following table summarizes long-lived assets by geographic location for the years ended: December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 129,039 $ 120,009 $ 104,231 Foreign 6,881 4,665 5,115 Total long-lived assets $ 135,920 $ 124,674 $ 109,346 Leases Our leases are primarily for facilities and certain equipment. We determine if an arrangement is a lease at its inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and corresponding operating lease liabilities are recognized in our consolidated balance sheets at the lease commencement date based on the present value of lease payments over the lease term. Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. Finance lease expense is recognized as the expense from straight-line amortization of the right-of-use asset plus the periodic interest expense from the lease obligation. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. We apply a practical expedient for short-term leases whereby we do not recognize a lease liability and right-of-use asset for leases with a term of less than 12 months. Short-term lease expense recognized in fiscal 2023, 2022 and 2021 was immaterial. We do not separate lease and non-lease components. Our leases have remaining lease terms and expire at various dates through 2027. Our lease terms may include options to extend or terminate the lease when it is reasonably certain and there is a significant economic incentive to exercise that option. Lease payments during renewal periods were considered in the calculation of right-of-use assets and lease obligations. See Note 9 for additional information regarding leases. Contract Assets and Contract Liabilities Contract assets are recognized when a performance obligation has been satisfied and the Company has an unconditional right to receive payment for the goods or services transferred. Contract assets are transferred to accounts receivable when the rights for payment become unconditional. Contract liabilities are recognized when the Company receives consideration from a customer before satisfying a performance obligation. For the years ended December 31, 2023, 2022 and 2021 the Company did no t have contract assets. Terms on account receivables vary and are based on specific terms agreed upon with the customer. For the years ended December 31, 2023, 2022 and 2021, contract liabilities were $0.2 million, $0.2 million and $0.3 million, respectively, and are included in accrued liabilities on the accompanying consolidated balance sheets. For the years ended December 31, 2023, 2022 and 2021, the Company did not increase contract liabilities. For the years ended December 31, 2023, 2022 and 2021, the Company settled $15.0 thousand, for each of the three years ended of this liability with a contract credit in lieu of satisfaction of these obligations. Product Warranty Our products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage on our products is generally provided for specified periods of time and generally covers parts, labor, and other expenses for non-maintenance repairs. At the time of sale, the Company recognizes expense and records an accrual for estimated costs. The Company’s estimate of the cost of future warranty claims is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of warranty claims to sales and the historical length of time between the sale and resulting warranty claim. Warranty expense in 2023, 2022 and 2021, was $4.0 million, $3.2 million and $2.4 million, respectively. The table below provides a summary of the warranty liability: December 31, (in thousands) 2023 2022 Accrual at beginning of the year $ 2,098 $ 3,076 Provision 4,048 3,237 Settlement and other, net of translation adjustment (3,333) (4,215) Accrual at end of year $ 2,813 $ 2,098 Foreign Currency Translation The functional currency for the Company’s foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date, historical rates for equity and the weighted average exchange rate during the period for revenue and expense accounts. Foreign currency translation adjustments resulting from such translations are included in shareholders’ equity. Intercompany transactions denominated in a currency other than the functional currency are remeasured into the functional currency. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in our consolidated statements of income. Income Taxes We account for income taxes using the asset and liability method. The Company is subject to income taxes in both the United States and foreign jurisdictions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Tax loss carryforwards, reversal of deferred tax liabilities, tax planning and estimates of future taxable income are considered in assessing the need for a valuation allowance. The company recognizes the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50.0 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company also records interest and penalties related to unrecognized tax benefits within income tax expense. At December 31, 2023 and 2022, the Company reported no unrecognized tax benefits in the consolidated balance sheets and no activity relating to unrecognized tax positions was recognized in the consolidated statements of income. Revenue Recognition Revenues are recognized when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs upon shipment, which is when control of the promised goods or service is transferred to a customer. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when control transfers to the customer. Control transfers when the reason for the bill and hold arrangement is substantive, the product is separately identified as belonging to the customer, the product is ready for physical transfer and the product cannot be used or directed to another customer. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer of products. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Depending on the terms of the arrangement, for certain contracts the Company may defer the recognition of a portion of the consideration received because a future obligation has not yet been satisfied, such as an extended warranty contract. An observable stand-alone selling price for separate performance obligations or a cost-plus margin approach is utilized when one is not available. Disaggregation of Revenue The following table summarizes revenue by region for the years ended: December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 1,038,964 $ 765,307 $ 627,573 Foreign 114,390 83,149 89,903 Total net revenue $ 1,153,354 $ 848,456 $ 717,476 Research and Development The Company’s research and development costs are expensed as incurred and included in cost of operations and to a lesser extent in selling, general and administrative expenses. Research and development costs were $6.0 million, $4.0 million and $3.6 million, for fiscal years ending December 31, 2023, 2022 and 2021, respectively. Shipping and Handling The Company records revenues earned for shipping and handling as revenue, while the costs are primarily included in cost of operations in our consolidated statements of income (loss). Costs include all delivery expenses as well as all costs to prepare the product for shipment. Stock-Based Compensation Stock-based compensation provided to employees and non-employee directors is recognized in the consolidated statements of income/(loss) based on the grant date fair value of the awards. The fair value of restricted stock units is determined by the grant date market price of our common shares. The compensation expense recognized for stock-based awards is net of estimated forfeitures and is recognized ratably over the service period of the awards. All income tax effects of share-based awards are recognized in the consolidated statements of income/(loss) as awards vest or are settled. We classify stock-based compensation in selling, general and administrative expenses within the consolidated statements of income. See Note 12 for additional information regarding stock-based compensation. On November 6, 2023, the Compensation Committee approved the Excess Incentive-Based Compensation Recoupment Policy of the Company (the “Policy”), with an effective date of November 6, 2023, in order to comply with the final clawback rules adopted by the Securities and Exchange Commission under Section 10D and Rule 10D-1 of the Securities Exchange Act of 1934, as amended (“Rule 10D-1”), and the listing standards of the New York Stock Exchange (together with Rule 10D-1, the “Final Clawback Rules”). The Policy provides for the mandatory recovery of erroneously awarded incentive-based compensation from current and former executive officers of the Company, as defined in Rule 10D-1, in the event the Company is required to prepare an accounting restatement, in accordance with Final Clawback Rules. Earnings Per Share We compute basic earnings per share based on the weighted average number of shares of common stock outstanding during the period. We calculate diluted earnings per share based on the weighted average number of shares of common stock plus the effect of potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include outstanding restricted stock units. When we are in a loss position for the period, dilutive securities are excluded from the calculation of earnings per share, as they would have an anti-dilutive effect. See Note 13. Recently Adopted Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this Update require that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts. The amendments in this Update were effective for the Company for fiscal years ending December 31, 2023 including interim periods within those fiscal years . Early adoption was permitted including adoption at an interim period. The Company has applied the amendments prospectively. The adoption of this update did not have a material impact on the Company’s consolidated financial statements and related disclosures. Recently Issued Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this Update require an entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU also requires entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under this ASU. The amendments in this Update are effective for fiscal years beginning after 15 December 2023, and interim periods within fiscal years beginning after 15 December 2024, with early adoption permitted. We are currently evaluating the impact this standard will have on our disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update improve transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this Update are effective for fiscal years beginning after 15 December 2024, with early adoption permitted for annual financial statements that have not been issued or made available for issuance. We are currently evaluating the impact this standard will have on our disclosures. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 2. BUSINESS COMBINATIONS On May 31, 2023, the Company acquired substantially all of the assets and assumed certain liabilities of Southern Hydraulic Cylinder, Inc., (“SHC”), a Tennessee corporation. SHC manufactures, sells and services hydraulic cylinders and related components. The operations of SHC align with those of the Company, which management believes will strengthen its efforts to enhance the stability of the Company’s supply chain. The purchase price totaling approximately $17.4 million was comprised of cash on hand and by drawing on the existing revolving credit facility. The preliminary allocation of the consideration for the net assets acquired from the acquisition of SHC were as follows: (in thousands) Sources of financing Cash $ 17,376 Fair value of consideration transferred 17,376 Fair value of assets and liabilities Accounts receivable 2,245 Fixed assets 3,735 Inventory 3,467 Prepaid insurance 71 Intangibles 193 Total identifiable assets acquired 9,711 Assumed liabilities 738 Goodwill $ 8,403 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is deductible for tax purposes. The acquisition of SHC resulted in the recognition of $8.4 million of goodwill. The Company believes goodwill is attributable to the Company’s investment for its ability to stabilize supply chain through vertical integration and introducing automation and improving production efficiency and the workforce of the acquired business. The real property fair value of $3.0 million was comprised of land and buildings of $2.8 million and cranes of $0.2 million. The fair value was determined by a third-party appraisal performed using a sales comparison approach and income approach. Net book value was determined to approximate fair market value for the remaining fixed assets. Identifiable intangible assets consisted of a restrictive covenant agreement of $25.0 thousand and order backlog of $168.0 thousand. The fair value of intangible assets was determined by a third party valuation. The restrictive covenant agreement and order backlog were valued using the income approach, specifically the with and without method and multi-period excess earnings method, respectively. The fair value of the assets acquired includes trade receivables of $2.2 million that are not purchased financial assets with credit deterioration. The Company does not anticipate any markdowns of trade receivables or corresponding credit losses. The results of operations of SHC for the period from the May 31, 2023 acquisition date through December 31, 2023, are included in the accompanying consolidated statements of operations since the acquisition date. Transaction costs associated with the acquisition were not significant. Pro Forma Consolidated Financial Information (Unaudited) The results of operations for SHC, and the estimated fair values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since its respective date of acquisition. For the year ended December 31, 2023 and since the June 1, 2023 date of its acquisition, SHC contributed approximately $6.0 million to the Company’s revenues and increased pretax income by approximately $1.1 million. Earnings for the period include adjustments made for the elimination of intercompany sales and profits, as well as sales of finished goods recorded at market value as part of the acquisition. The unaudited pro forma financial information in the table below summarizes the combined results of the Company’s operations and those of SHC for the periods as shown as if the acquisition of SHC had occurred on January 1, 2021. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions and other uncertainties. The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. Pro forma for Years Ended December 31, (in thousands) 2023 2022 2021 Revenue $ 1,157 $ 861 $ 728 Earnings $ 60 $ 22 $ 17 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORY | |
INVENTORY | 3. INVENTORY Inventories, net of reserves, consisted of the following: December 31, (in thousands) 2023 2022 Chassis $ 29,748 $ 18,604 Raw materials 89,048 75,934 Work in process 47,934 40,655 Finished goods 23,077 18,463 Total inventory $ 189,807 $ 153,656 For the years ended December 31, 2023 and 2022, inventories presented in the consolidated balance sheets are net of inventory reserves of $5.6 million and $5.9 million, respectively. The Company did not recognize any impairment of inventory. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL. | |
GOODWILL | 5. GOODWILL The Company’s acquisition of Southern Hydraulic Cylinder, Inc., resulted in the recognition of approximately $8.4 million of goodwill. For additional information on the Company’s acquisition of Southern Hydraulic Cylinder, Inc., see Note 2 – Business Combinations. The following table summarizes the changes in the carrying amount of goodwill: (in thousands) Total Balance at December 31, 2022 $ 11,619 SHC, Inc. 8,403 Balance at December 31, 2023 $ 20,022 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | 6 . ACCRUED LIABILITIES The major classes of accrued liabilities are summarized as follows: December 31, (in thousands) 2023 2022 Accrued wages, commissions, bonuses and benefits $ 20,847 $ 11,370 Accrued sales related expenses 5,919 6,310 Deferred revenue 5,901 4,155 Accrued product warranty 2,813 2,098 Other 5,313 4,400 Total accrued liabilities $ 40,793 $ 28,333 |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM OBLIGATIONS | |
LONG-TERM OBLIGATIONS | 7 . LONG-TERM OBLIGATIONS Credit Facility On October 28, 2022, we entered into a first amendment to the loan agreement with First Horizon Bank to increase the credit facility from $50.0 million to $100.0 million, made certain technical and operational adjustments necessary to implement the one-month Term SOFR Rate (as defined in the loan agreement) as the primary interest rate index under the credit facility, and added a new asset coverage financial covenant test. All other material terms and conditions of the credit facility remained unchanged. All borrowings under the amended credit facility bear interest at the one-month Term SOFR Rate plus 1.00% or 1.25% per annum. The credit facility contains customary representations and warranties, events of default, and financial affirmative and negative covenants. Covenants under the credit facility restrict the payment of cash dividends if we would be in violation of the minimum tangible net worth test or the leverage ratio test as a result of the dividend, among other restrictions. Interest expense on the credit facility was $3.4 million, $1.1 million and $0.1 million for the years ended December 31, 2023, 2022, and 2021, respectively. We were in compliance with all covenants under the credit facility as of December 31, 2023. The Company had outstanding borrowings of $60.0 million under the credit facility at December 31, 2023. The Company had outstanding borrowings of $45.0 million under the credit facility at December 31, 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 8. INCOME TAXES The following table summarizes income/(loss) before income taxes, including intercompany amounts: December 31, (in thousands) 2023 2022 2021 United States $ 65,068 $ 21,572 $ 10,947 Foreign 8,716 4,160 10,819 Total $ 73,784 $ 25,732 $ 21,766 The following table presents the significant components of the income tax provision: December 31, (in thousands) 2023 2022 2021 Current: Federal $ 14,949 $ 3,225 $ 1,126 State 541 180 343 Foreign 2,184 920 3,016 Total Current $ 17,674 $ 4,325 $ 4,485 Deferred: Federal $ 1,797 $ 890 $ 981 State 310 91 13 Foreign 74 80 32 Total Deferred $ 2,181 $ 1,061 $ 1,026 Provision for/(benefit from) income taxes $ 15,493 $ 5,386 $ 5,511 The following table presents a reconciliation of income taxes calculated at the statutory rate and the provision for income taxes: December 31, 2023 2022 2021 Federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax benefit 0.2 % 0.8 % 1.3 % Excess of foreign tax over U.S. tax on foreign income 0.4 % 0.5 % 3.6 % Domestic tax deductions and credits (0.2) % (1.3) % (1.6) % Foreign derived intangible income deduction (0.6) % (0.3) % — % Other 0.2 % 0.3 % 1.0 % Effective tax rate 21.0 % 21.0 % 25.3 % The following table shows significant components of our deferred tax assets and liabilities: December 31, (in thousands) 2023 2022 Deferred tax assets: Allowance for credit losses $ 307 $ 268 Accruals and reserves 3,169 2,058 Research and development 2,316 1,697 Other 1,099 747 Total deferred tax assets 6,891 4,770 Deferred tax liabilities: Property, plant, and equipment 10,701 10,989 Other 260 11 Total deferred tax liabilities 10,961 11,000 Net deferred tax liability $ (4,070) $ (6,230) Deferred tax assets represent the future tax benefit of future deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the recorded deferred tax assets to net realizable value. The Company has evaluated positive and negative evidence to assess the realizability of its deferred taxes. Based on the evidence, the Company believes it is more likely than not that its deferred tax assets will be realizable. Accordingly, the Company has not included a valuation allowance against its deferred tax assets at this time. We do not currently have plans to repatriate undistributed foreign earnings to the United States and have not determined any timeline or amount for any such future distributions. As of December 31, 2023 and 2022, the Company had no federal net operating loss carryforwards, and a state net operating loss carryforward of approximately $3.7 million. The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s 2020 and later tax years remain open to examination by the tax authorities. With few exceptions, as of December 31, 2023, the Company is no longer subject to U.S. federal, state or non-U.S. income tax examination prior to 2020. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 9. LEASES The following table summarizes the components of lease cost: December 31, (in thousands) 2023 2022 2021 Lease Cost Finance lease cost: Amortization of right-of-use assets $ — $ 14 $ 22 Interest on lease obligation — 1 1 Total finance lease cost — 15 23 Total long-term operating lease cost 365 387 419 Total short-term operating lease cost 368 592 493 Total lease cost $ 733 $ 994 $ 935 The following table summarizes supplemental balance sheet and other information related to leases at: December 31, (in thousands) 2023 2022 Operating Leases $ Operating lease right-of-use assets 826 909 Current portion of operating lease liabilities 320 311 Long-term operating lease liabilities 506 597 Total operating lease liabilities 826 908 The following table presents other lease information related to the Company’s leases: December 31, 2023 2022 Weighted-average remaining lease term (years) Operating leases 2.7 3.1 Finance leases — — Weighted-average discount rate Operating leases 3.5 % 3.1 % Finance leases — % 4.0 % The following table summarizes supplemental cash flow information related to leases: December 31, (in thousands) 2023 2022 2021 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 365 $ 387 $ 419 Financing cash flows from finance leases — 15 22 Right-of-use assets obtained in exchange for new operating lease obligations — 117 143 Future lease payments under non-cancellable leases as of December 31, 2023 were as follows: (in thousands) Operating Lease Obligations Remaining lease payments to be paid during the year ended December 31, 2024 $ 360 2025 306 2026 139 2027 30 2028 24 Thereafter 11 Total lease payments 869 Less imputed interest (43) Lease obligation at December 31, 2023 $ 826 Related Party Leases The Company’s subsidiary in the United Kingdom leased facilities used for manufacturing and office space from a related party with related lease costs during the years ended December 31, 2023, 2022, and 2021 of $0.2 million for all three years. The Company’s French subsidiary leased a fleet of vehicles from a related party with related lease costs during the year ended December 31, 2023, 2022, and 2021 of $0.2 million, $0.1 million, and $0.1 million, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Commitments At December 31, 2023 and December 31, 2022, the Company had commitments of approximately $8.6 million and $6.4 million, respectively, for construction and acquisition of property, plant and equipment. The Company migrated its enterprise resource planning (ERP) system to a multi-tenant cloud environment in 2021 and is continuing to implement additional modules such as enterprise performance management, human capital management, data analytics and the use of artificial intelligence. At December 31, 2023 and December 31, 2022, the Company had commitments related to the continuing implementation project of approximately $1.4 million and $2.6 million, respectively, in software license fees payable in installments through 2025. Contingencies The Company has entered into arrangements with third-party lenders where it has agreed to repurchase products that are repossessed from the independent distributor customer in the event of default. These arrangements are typically subject to a maximum repurchase amount. For fiscal years ended December 31, 2023 and December 31, 2022, the maximum amount of collateral the Company could be required to purchase was $128.7 million and $74.1 million, respectively. The Company’s financial exposure under these arrangements is limited to the difference between the amount paid to third-party lenders for repurchases of inventory and the amount received upon subsequent resale of the repossessed product. The Company had no repurchases of inventory during fiscal 2023 and 2022 and concluded the liability associated with potential repurchase obligations was neither probable, nor material. Litigation We are subject to a variety of claims and lawsuits that arise from time to time in the ordinary course of business. The Company has established accruals for matters that are probable and reasonably estimable and maintains product liability and other insurance that management believes to be adequate. Although management believes that any pending claims and lawsuits will not have a significant impact on the Company’s consolidated financial position or results of operations, the adjudication of such matters are subject to inherent uncertainties and management’s assessment may change depending on future events. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
SHAREHOLDERS EQUITY | |
SHAREHOLDERS EQUITY | 11. SHAREHOLDERS’ EQUITY Common Shares The Company is authorized to issue up to 100,000,000 shares of common stock with a par value of $0.01 per share. For more information on stock-based compensation and the Company’s 2016 Stock Incentive Plan, see Note 12 to our consolidated financial statements. Preferred Shares The Company is authorized to issue up to 5,000,000 shares of undesignated preferred stock with a par value of $0.01 per share that can be issued in one or more series. The terms, price and conditions of the preferred shares are set by the Board of Directors. No shares of preferred stock have been issued. Dividends The Company pays quarterly cash dividends and has paid quarterly cash dividends consecutively since May 2011. We paid cash dividends per common share of $0.72 in fiscal 2023, 2022, and 2021, respectively. |
STOCK INCENTIVE PLAN
STOCK INCENTIVE PLAN | 12 Months Ended |
Dec. 31, 2023 | |
STOCK INCENTIVE PLAN | |
STOCK INCENTIVE PLAN | 12. STOCK INCENTIVE PLAN Effective August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (“the 2016 Plan”). Pursuant to the 2016 Plan, the Board of Directors may grant up to 800,000 shares under share-based awards to officers, directors, and employees. The 2016 Plan provides for the issuance of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, performance shares, performance units and other stock-based awards or an y combination thereof . The 2016 Plan was approved by the shareholders of the Company at its Annual Meeting on May 26, 2017. The 2016 Plan will terminate on August 1, 2026. Restricted Stock Units Restricted stock units are subject only to service conditions. Executive Officer awards vest ratably over five years and non-employee director awards cliff-vest after one year. The following table summarizes all transactions related to restricted stock units under the 2016 Plan: (in thousands, except share amounts) Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 — $ — Granted 160,000 29.95 Vested — — Forfeited — — Nonvested at December 31, 2022 160,000 $ 29.95 Granted 18,835 33.98 Vested (32,000) (29.95) Forfeited — — Nonvested at December 31, 2023 146,835 $ 33.98 The following table provides additional data related to restricted share unit activity: (in thousands) 2023 2022 2021 Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax $ 3,154 $ 4,392 $ — Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years) 3.2 4.2 — Total fair value of shares vested during the year $ 958 $ — $ — On April 11, 2023, the Compensation Committee of the Board of Directors adopted the 2023 Executive Annual Bonus Plan (the “New Bonus Program”). The New Bonus Program supersedes and replaces the cash bonus programs the Company previously adopted for its Co-Chief Executive Officers in September 2018, for certain of its executive officers in May 2021 and for the Company’s executive officers in February 2022. As of the date of this filing, no restricted stock units under the New Bonus Program have been granted. For further information under this New Bonus Program, please see the Form 8-K filed on April 17, 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The following table reconciles the number of common shares used to calculate basic and diluted earnings per share: December 31, (in thousands, except per share amounts) 2023 2022 2021 Basic earnings (loss) per common share: Net income (loss) - basic $ 58,291 $ 20,346 $ 16,255 Weighted shares outstanding 11,438,965 11,416,667 11,410,728 Basic earnings (loss) per common share: $ 5.10 $ 1.78 $ 1.42 Diluted earnings (loss) per common share: Net income (loss) - basic $ 58,291 $ 20,346 $ 16,255 Weighted shares outstanding - basic 11,438,965 11,416,667 11,410,728 Effect of dilutive securities 67,995 — — Weighted shares outstanding - diluted 11,506,960 11,416,667 11,410,728 Diluted earnings (loss) per common share $ 5.07 $ 1.78 $ 1.42 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 14. EMPLOYEE BENEFIT PLANS Substantially all of our full-time employees with at least 90 days of service are eligible to be enrolled in our company-sponsored retirement savings plan which include features under Section 401(k) of the Internal Revenue Code of 1986 and provides for matching and discretionary contributions by the Company. The Company matched 50.0% of the first 5.0% of the participants’ contribution. Matching contributions vest over the first five years of employment. Company contributions to the plan were $1.6 million, $1.4 million and $1.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
CORRECTION OF PRIOR PERIOD ERRO
CORRECTION OF PRIOR PERIOD ERRORS | 12 Months Ended |
Dec. 31, 2023 | |
CORRECTION OF PRIOR PERIOD ERRORS | |
CORRECTION OF PRIOR PERIOD ERRORS | 15. CORRECTION OF PRIOR PERIOD ERRORS As previously disclosed in Note 11 to the Company’s consolidated financial statements as of and for the fiscal year ended December 31, 2022, the Company identified prior period accounting errors that the Company has concluded are not material to the Company’s previously reported consolidated financial statements and unaudited interim condensed consolidated financial statements. The financial reporting periods affected by these errors include the Company’s previously reported consolidated financial statements for the fiscal year ended December 31, 2021 and the Company’s previously reported unaudited interim condensed consolidated financial information for each of the quarterly and fiscal year-to-date periods in the fiscal year ended December 31, 2022 (collectively the “previously reported financial statements”). Based on management’s evaluation of the accounting errors under the SEC Staff’s Accounting Bulletins Nos. 99 (“SAB 99”) and 108 (“SAB 108”) and interpretations thereof, the Company concluded the errors are not material, on an individual or aggregate basis, to the Company’s previously reported financial statements. The errors originated many years ago, are less than 3.6% of the impacted accounts, and would not materially impact ratios or amounts relied upon by users of the financial statements. However, the Company further concluded the accounting errors cannot be corrected as an out-of-period adjustment in the Company’s current period consolidated financial statements as of and for the year ended December 31, 2022, because to do so would cause a material misstatement in those financial statements. Accordingly, the Company proceeded according to the guidance prescribed by SAB 108 which specifies that the errors must be corrected the next time the previously reported financial statements are filed. Therefore, the Company corrected these accounting errors in all of the Company’s previously reported annual and interim consolidated financial statements impacted by the errors, which includes the accompanying consolidated financial statements as of and for the year ended December 31, 2022. The following tables present the impact of correcting these errors on the Company’s previously reported financial statements for the periods presented: December 31, 2021 (in thousands) As Reported Adjustment Revised Property, plant and equipment, net $ 96,496 $ (1,203) $ 95,293 Accounts payable 119,029 2,717 121,746 Accumulated surplus 141,918 (3,920) 137,998 December 31, 2020 (in thousands) As Reported Adjustment Revised Property, plant and equipment, net $ 98,620 $ (1,203) $ 97,417 Accounts payable 85,534 2,717 88,251 Accumulated surplus 133,879 (3,920) 129,959 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS Quarterly Dividend On March 4, 2024 , the Company’s Board of Directors declared a quarterly cash dividend of $0.19 per share, which is a $0.01 increase over the prior quarter. The dividend is payable March 25, 2024 to shareholders of record as of March 18, 2024 . |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
VALUATION AND QUALIFYING ACCOUNTS | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II –VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Expense Accounts Written Off Balance at End of Period (in thousands) Year ended December 31, 2023 Deduction from asset accounts: Allowance for credit losses $ 1,319 208 — $ 1,527 Year ended December 31, 2022 Deduction from asset accounts: Allowance for credit losses $ 1,155 174 (10) $ 1,319 Year ended December 31, 2021 Deduction from asset accounts: Allowance for credit losses $ 1,295 (137) (3) $ 1,155 |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States ("U.S.") and include the accounts of the Company and its wholly-owned subsidiaries. In the opinion of management, the consolidated financial statements include all adjustments necessary for the fair presentation of the Company's consolidated financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated. To facilitate timely reporting, the consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st by 31 days (or less). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Significant estimates include: income tax accruals, the net realizable value of inventory, warranty accruals, allowance for expected credit losses, legal accruals, impairment testing to goodwill, other long-lived assets, stock-based compensation and valuations of the assets acquired and liabilities assumed in a business combination or asset acquisition, when applicable. Actual results could differ materially from those estimates. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment and other relevant factors, as applicable. Management adjusts such estimates and assumptions when facts and circumstances dictate. |
Cash and Temporary Investments | Cash and Temporary Investments Cash consists of deposits held at financial institutions. We consider liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Trade receivables are presented net of an allowance for doubtful accounts of $1.5 million and $1.3 million at December 31, 2023 and 2022, respectively. W e regularly monitor past due accounts and establish appropriate reserves to cover potential losses. Since the Company’s trade receivables are largely similar, the Company evaluates its allowance for credit losses as one portfolio segment. The allowance is estimated using a combination of factors including the age of receivable balances and historical credit loss experience, supplemented by the Company’s knowledge of customer specific information, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We write off any amounts deemed uncollectible against the established allowance for credit losses. For receivables not serviced through third-party floor plan financing arrangements, the company extends credit ranging in terms depending on product line, to customers in the normal course of business. For a rollforward of the allowance for credit losses, see “Schedule II – Valuation of Qualifying Accounts” contained herein. |
Inventories, Net | Inventories, Net Inventory costs associated with the manufacturing of inventories include materials, labor and factory overhead. Inventories are valued at the lower of cost or net realizable value determined primarily on a moving average unit cost basis. Appropriate consideration is given to obsolescence, valuation and other factors in determining net realizable value. Net realizable value is the value of an asset that can be realized upon the sale of the asset, less a reasonable estimate of the costs associated with the sale of the asset. Significant variances in those estimates may require a revision to future inventory reserve estimates. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost less accumulated depreciation. Property, plant and equipment held for sale are recorded at the lower of cost less accumulated depreciation or fair value less any cost to sell. Fully depreciated assets are retained in property, plant and equipment and accumulated depreciation until they are removed from service. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the consolidated balance sheets and any resulting gain or loss from disposition is recorded as other (income) expense, net in the consolidated statements of income in the period realized. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. We capitalize project costs relating to computer software development when the activities related to the project reach the application stage and amortize those costs to expense on a straight-line basis over five years . Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred. Depreciation expense for financial reporting purposes is computed using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over 20 to 30 years , and machinery and equipment, furniture and fixtures and software costs are depreciated over 5 to 10 years . Expenditures for routine maintenance and repairs are charged to expense as incurred. |
Business Combinations | Business Combinations Business combinations are accounted for under Accounting Standards Codification (“ASC”) 805, Business Combinations , using the acquisition method of accounting under which all acquired tangible and identifiable intangible assets and assumed liabilities and applicable noncontrolling interests are recognized at fair value as of the respective acquisition date, while the costs associated with the acquisition of a business are expensed as incurred. The company may refine the estimated fair values of assets acquired and liabilities assumed, if necessary, over a period not to exceed one year from the date of acquisition by taking into consideration new information about facts and circumstances that existed as of the acquisition date that, if known at the date of acquisition, would have affected the estimated fair values ascribed to the assets acquired and liabilities assumed. Net working capital adjustments related to the acquisitions are estimated as of the closing date and will be adjusted based on that estimate. Net working capital adjustments, if any, will be recorded in other assets on the consolidated balance sheet. During the measurement period, any purchase price allocation changes that impact the carrying value of goodwill would also affect the amount of goodwill impairment taken, if applicable. If necessary, purchase price allocation revisions that occur outside of the measurement period are recorded within cost of sales or selling, general and administrative expense within the consolidated statements of income depending on the nature of the adjustment. When an acquisition does not meet the definition of a business combination because either: (i) substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or group of similar identified assets, or (ii) the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, the company accounts for the acquisition as an asset acquisition. |
Goodwill | Goodwill Goodwill represents the excess of consideration transferred over the estimated fair value of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized. However, the Company reviews goodwill for impairment annually, during the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate that an impairment may exist. In conducting our annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If factors indicate that the fair value of a reporting unit is less than its carrying amount, the Company performs a quantitative assessment and the fair value is determined by analyzing the expected present value of future cash flows. If the carrying value of a reporting unit continues to exceed its fair value, the fair value of goodwill is calculated and an impairment loss equal to the excess is recorded. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be fully recoverable. When a determination has been made that the carrying amount of long-lived assets may not be fully recovered, the amount of impairment is measured by comparing an asset’s estimated fair value to its carrying value. The determination of fair value is based on projected future cash flows discounted at a rate determined by management, or if available, independent appraisals or sales price negotiations. No impairment loss was recognized for long-lived assets during the years ended December 31, 2023 and 2022, respectively. The following table summarizes long-lived assets by geographic location for the years ended: December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 129,039 $ 120,009 $ 104,231 Foreign 6,881 4,665 5,115 Total long-lived assets $ 135,920 $ 124,674 $ 109,346 |
Leases | December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 129,039 $ 120,009 $ 104,231 Foreign 6,881 4,665 5,115 Total long-lived assets $ 135,920 $ 124,674 $ 109,346 |
Contract Assets and Contract Liabilities | Contract Assets and Contract Liabilities Contract assets are recognized when a performance obligation has been satisfied and the Company has an unconditional right to receive payment for the goods or services transferred. Contract assets are transferred to accounts receivable when the rights for payment become unconditional. Contract liabilities are recognized when the Company receives consideration from a customer before satisfying a performance obligation. For the years ended December 31, 2023, 2022 and 2021 the Company did no t have contract assets. Terms on account receivables vary and are based on specific terms agreed upon with the customer. For the years ended December 31, 2023, 2022 and 2021, contract liabilities were $0.2 million, $0.2 million and $0.3 million, respectively, and are included in accrued liabilities on the accompanying consolidated balance sheets. For the years ended December 31, 2023, 2022 and 2021, the Company did not increase contract liabilities. For the years ended December 31, 2023, 2022 and 2021, the Company settled $15.0 thousand, for each of the three years ended of this liability with a contract credit in lieu of satisfaction of these obligations. |
Product Warranty | Product Warranty Our products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage on our products is generally provided for specified periods of time and generally covers parts, labor, and other expenses for non-maintenance repairs. At the time of sale, the Company recognizes expense and records an accrual for estimated costs. The Company’s estimate of the cost of future warranty claims is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of warranty claims to sales and the historical length of time between the sale and resulting warranty claim. Warranty expense in 2023, 2022 and 2021, was $4.0 million, $3.2 million and $2.4 million, respectively. The table below provides a summary of the warranty liability: December 31, (in thousands) 2023 2022 Accrual at beginning of the year $ 2,098 $ 3,076 Provision 4,048 3,237 Settlement and other, net of translation adjustment (3,333) (4,215) Accrual at end of year $ 2,813 $ 2,098 |
Foreign Currency Translation | December 31, (in thousands) 2023 2022 Accrual at beginning of the year $ 2,098 $ 3,076 Provision 4,048 3,237 Settlement and other, net of translation adjustment (3,333) (4,215) Accrual at end of year $ 2,813 $ 2,098 |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. The Company is subject to income taxes in both the United States and foreign jurisdictions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Tax loss carryforwards, reversal of deferred tax liabilities, tax planning and estimates of future taxable income are considered in assessing the need for a valuation allowance. The company recognizes the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50.0 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company also records interest and penalties related to unrecognized tax benefits within income tax expense. At December 31, 2023 and 2022, the Company reported no unrecognized tax benefits in the consolidated balance sheets and no activity relating to unrecognized tax positions was recognized in the consolidated statements of income. |
Revenue Recognition | Revenue Recognition Revenues are recognized when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs upon shipment, which is when control of the promised goods or service is transferred to a customer. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when control transfers to the customer. Control transfers when the reason for the bill and hold arrangement is substantive, the product is separately identified as belonging to the customer, the product is ready for physical transfer and the product cannot be used or directed to another customer. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer of products. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Depending on the terms of the arrangement, for certain contracts the Company may defer the recognition of a portion of the consideration received because a future obligation has not yet been satisfied, such as an extended warranty contract. An observable stand-alone selling price for separate performance obligations or a cost-plus margin approach is utilized when one is not available. Disaggregation of Revenue The following table summarizes revenue by region for the years ended: December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 1,038,964 $ 765,307 $ 627,573 Foreign 114,390 83,149 89,903 Total net revenue $ 1,153,354 $ 848,456 $ 717,476 |
Research and Development | December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 1,038,964 $ 765,307 $ 627,573 Foreign 114,390 83,149 89,903 Total net revenue $ 1,153,354 $ 848,456 $ 717,476 |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation provided to employees and non-employee directors is recognized in the consolidated statements of income/(loss) based on the grant date fair value of the awards. The fair value of restricted stock units is determined by the grant date market price of our common shares. The compensation expense recognized for stock-based awards is net of estimated forfeitures and is recognized ratably over the service period of the awards. All income tax effects of share-based awards are recognized in the consolidated statements of income/(loss) as awards vest or are settled. We classify stock-based compensation in selling, general and administrative expenses within the consolidated statements of income. See Note 12 for additional information regarding stock-based compensation. On November 6, 2023, the Compensation Committee approved the Excess Incentive-Based Compensation Recoupment Policy of the Company (the “Policy”), with an effective date of November 6, 2023, in order to comply with the final clawback rules adopted by the Securities and Exchange Commission under Section 10D and Rule 10D-1 of the Securities Exchange Act of 1934, as amended (“Rule 10D-1”), and the listing standards of the New York Stock Exchange (together with Rule 10D-1, the “Final Clawback Rules”). The Policy provides for the mandatory recovery of erroneously awarded incentive-based compensation from current and former executive officers of the Company, as defined in Rule 10D-1, in the event the Company is required to prepare an accounting restatement, in accordance with Final Clawback Rules. |
Earnings Per Share | Earnings Per Share We compute basic earnings per share based on the weighted average number of shares of common stock outstanding during the period. We calculate diluted earnings per share based on the weighted average number of shares of common stock plus the effect of potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include outstanding restricted stock units. When we are in a loss position for the period, dilutive securities are excluded from the calculation of earnings per share, as they would have an anti-dilutive effect. See Note 13. |
Recent Accounting Pronouncements | Recently Adopted Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this Update require that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts. The amendments in this Update were effective for the Company for fiscal years ending December 31, 2023 including interim periods within those fiscal years . Early adoption was permitted including adoption at an interim period. The Company has applied the amendments prospectively. The adoption of this update did not have a material impact on the Company’s consolidated financial statements and related disclosures. Recently Issued Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this Update require an entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU also requires entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under this ASU. The amendments in this Update are effective for fiscal years beginning after 15 December 2023, and interim periods within fiscal years beginning after 15 December 2024, with early adoption permitted. We are currently evaluating the impact this standard will have on our disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update improve transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this Update are effective for fiscal years beginning after 15 December 2024, with early adoption permitted for annual financial statements that have not been issued or made available for issuance. We are currently evaluating the impact this standard will have on our disclosures. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of long-lived assets by region | December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 129,039 $ 120,009 $ 104,231 Foreign 6,881 4,665 5,115 Total long-lived assets $ 135,920 $ 124,674 $ 109,346 |
Schedule of product warranty liability | December 31, (in thousands) 2023 2022 Accrual at beginning of the year $ 2,098 $ 3,076 Provision 4,048 3,237 Settlement and other, net of translation adjustment (3,333) (4,215) Accrual at end of year $ 2,813 $ 2,098 |
Schedule of disaggregation of revenue by the geographic region for customers | December 31, (in thousands) 2023 2022 2021 Geographic regions: North America $ 1,038,964 $ 765,307 $ 627,573 Foreign 114,390 83,149 89,903 Total net revenue $ 1,153,354 $ 848,456 $ 717,476 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATIONS | |
Schedule of allocation of the consideration for net assets acquired | (in thousands) Sources of financing Cash $ 17,376 Fair value of consideration transferred 17,376 Fair value of assets and liabilities Accounts receivable 2,245 Fixed assets 3,735 Inventory 3,467 Prepaid insurance 71 Intangibles 193 Total identifiable assets acquired 9,711 Assumed liabilities 738 Goodwill $ 8,403 |
Schedule of pro forma summary of the Company | Pro forma for Years Ended December 31, (in thousands) 2023 2022 2021 Revenue $ 1,157 $ 861 $ 728 Earnings $ 60 $ 22 $ 17 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORY | |
Schedule of inventories, net of reserves | December 31, (in thousands) 2023 2022 Chassis $ 29,748 $ 18,604 Raw materials 89,048 75,934 Work in process 47,934 40,655 Finished goods 23,077 18,463 Total inventory $ 189,807 $ 153,656 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | December 31, (in thousands) 2023 2022 Land and improvements $ 19,596 $ 16,855 Buildings and improvements 86,346 83,220 Machinery and equipment 86,250 78,959 Furniture and fixtures 13,560 12,451 Software costs 11,806 10,897 217,558 202,382 Less accumulated depreciation (102,486) (90,237) $ 115,072 $ 112,145 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL. | |
Schedule of goodwill | (in thousands) Total Balance at December 31, 2022 $ 11,619 SHC, Inc. 8,403 Balance at December 31, 2023 $ 20,022 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED LIABILITIES | |
Schedule of accrued liabilities | December 31, (in thousands) 2023 2022 Accrued wages, commissions, bonuses and benefits $ 20,847 $ 11,370 Accrued sales related expenses 5,919 6,310 Deferred revenue 5,901 4,155 Accrued product warranty 2,813 2,098 Other 5,313 4,400 Total accrued liabilities $ 40,793 $ 28,333 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of income before income tax, domestic and foreign | December 31, (in thousands) 2023 2022 2021 United States $ 65,068 $ 21,572 $ 10,947 Foreign 8,716 4,160 10,819 Total $ 73,784 $ 25,732 $ 21,766 |
Schedule of provision for income taxes | December 31, (in thousands) 2023 2022 2021 Current: Federal $ 14,949 $ 3,225 $ 1,126 State 541 180 343 Foreign 2,184 920 3,016 Total Current $ 17,674 $ 4,325 $ 4,485 Deferred: Federal $ 1,797 $ 890 $ 981 State 310 91 13 Foreign 74 80 32 Total Deferred $ 2,181 $ 1,061 $ 1,026 Provision for/(benefit from) income taxes $ 15,493 $ 5,386 $ 5,511 |
Schedule of effective income tax rate reconciliation | December 31, 2023 2022 2021 Federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax benefit 0.2 % 0.8 % 1.3 % Excess of foreign tax over U.S. tax on foreign income 0.4 % 0.5 % 3.6 % Domestic tax deductions and credits (0.2) % (1.3) % (1.6) % Foreign derived intangible income deduction (0.6) % (0.3) % — % Other 0.2 % 0.3 % 1.0 % Effective tax rate 21.0 % 21.0 % 25.3 % |
Schedule of deferred income tax assets and liabilities | December 31, (in thousands) 2023 2022 Deferred tax assets: Allowance for credit losses $ 307 $ 268 Accruals and reserves 3,169 2,058 Research and development 2,316 1,697 Other 1,099 747 Total deferred tax assets 6,891 4,770 Deferred tax liabilities: Property, plant, and equipment 10,701 10,989 Other 260 11 Total deferred tax liabilities 10,961 11,000 Net deferred tax liability $ (4,070) $ (6,230) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Summary of components of our lease cost | December 31, (in thousands) 2023 2022 2021 Lease Cost Finance lease cost: Amortization of right-of-use assets $ — $ 14 $ 22 Interest on lease obligation — 1 1 Total finance lease cost — 15 23 Total long-term operating lease cost 365 387 419 Total short-term operating lease cost 368 592 493 Total lease cost $ 733 $ 994 $ 935 December 31, (in thousands) 2023 2022 2021 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 365 $ 387 $ 419 Financing cash flows from finance leases — 15 22 Right-of-use assets obtained in exchange for new operating lease obligations — 117 143 |
Schedule of supplemental balance sheet and other information related to leases | December 31, (in thousands) 2023 2022 Operating Leases $ Operating lease right-of-use assets 826 909 Current portion of operating lease liabilities 320 311 Long-term operating lease liabilities 506 597 Total operating lease liabilities 826 908 |
Schedule of weighted average lease term and weighted average discount rate of leases | December 31, 2023 2022 Weighted-average remaining lease term (years) Operating leases 2.7 3.1 Finance leases — — Weighted-average discount rate Operating leases 3.5 % 3.1 % Finance leases — % 4.0 % |
Summary of maturities of operating lease liabilities | (in thousands) Operating Lease Obligations Remaining lease payments to be paid during the year ended December 31, 2024 $ 360 2025 306 2026 139 2027 30 2028 24 Thereafter 11 Total lease payments 869 Less imputed interest (43) Lease obligation at December 31, 2023 $ 826 |
STOCK INCENTIVE PLAN (Tables)
STOCK INCENTIVE PLAN (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCK INCENTIVE PLAN | |
Schedule of transactions related to restricted stock units under 2016 plan | (in thousands, except share amounts) Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 — $ — Granted 160,000 29.95 Vested — — Forfeited — — Nonvested at December 31, 2022 160,000 $ 29.95 Granted 18,835 33.98 Vested (32,000) (29.95) Forfeited — — Nonvested at December 31, 2023 146,835 $ 33.98 |
Schedule of additional data related to restricted share unit activity | (in thousands, except share amounts) Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 — $ — Granted 160,000 29.95 Vested — — Forfeited — — Nonvested at December 31, 2022 160,000 $ 29.95 Granted 18,835 33.98 Vested (32,000) (29.95) Forfeited — — Nonvested at December 31, 2023 146,835 $ 33.98 The following table provides additional data related to restricted share unit activity: (in thousands) 2023 2022 2021 Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax $ 3,154 $ 4,392 $ — Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years) 3.2 4.2 — Total fair value of shares vested during the year $ 958 $ — $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | December 31, (in thousands, except per share amounts) 2023 2022 2021 Basic earnings (loss) per common share: Net income (loss) - basic $ 58,291 $ 20,346 $ 16,255 Weighted shares outstanding 11,438,965 11,416,667 11,410,728 Basic earnings (loss) per common share: $ 5.10 $ 1.78 $ 1.42 Diluted earnings (loss) per common share: Net income (loss) - basic $ 58,291 $ 20,346 $ 16,255 Weighted shares outstanding - basic 11,438,965 11,416,667 11,410,728 Effect of dilutive securities 67,995 — — Weighted shares outstanding - diluted 11,506,960 11,416,667 11,410,728 Diluted earnings (loss) per common share $ 5.07 $ 1.78 $ 1.42 |
CORRECTION OF PRIOR PERIOD ER_2
CORRECTION OF PRIOR PERIOD ERRORS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CORRECTION OF PRIOR PERIOD ERRORS | |
Schedule of impact of correcting prior period errors | December 31, 2021 (in thousands) As Reported Adjustment Revised Property, plant and equipment, net $ 96,496 $ (1,203) $ 95,293 Accounts payable 119,029 2,717 121,746 Accumulated surplus 141,918 (3,920) 137,998 December 31, 2020 (in thousands) As Reported Adjustment Revised Property, plant and equipment, net $ 98,620 $ (1,203) $ 97,417 Accounts payable 85,534 2,717 88,251 Accumulated surplus 133,879 (3,920) 129,959 |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | ||
Impairment loss was recognized | $ 0 | $ 0 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment | ||
Useful life (years) | 20 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment | ||
Useful life (years) | 30 years | |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment | ||
Useful life (years) | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment | ||
Useful life (years) | 10 years | |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment | ||
Useful life (years) | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment | ||
Useful life (years) | 10 years | |
Software costs | ||
Property, Plant and Equipment | ||
Amortization period for intangible assets | 5 years | |
Software costs | Minimum | ||
Property, Plant and Equipment | ||
Useful life (years) | 5 years | |
Software costs | Maximum | ||
Property, Plant and Equipment | ||
Useful life (years) | 10 years |
ORGANIZATION AND SUMMARY OF S_5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrual at beginning of the year | $ 2,098 | $ 3,076 |
Provision | 4,048 | 3,237 |
Settlement and other, net of translation adjustment | (3,333) | (4,215) |
Accrual at end of year | $ 2,813 | $ 2,098 |
ORGANIZATION AND SUMMARY OF S_6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2023 USD ($) Distributor customer item | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Number of independent distributors | Distributor | 74 | |||
Distributors serve | item | 50 | |||
Accounts receivable, allowance for doubtful accounts | $ 1,527,000 | $ 1,319,000 | $ 1,527,000 | |
Allowance for doubtful accounts (in dollars) | 1,527,000 | 1,319,000 | 1,527,000 | |
Product warranty expense | 4,000,000 | 3,200,000 | $ 2,400,000 | |
Research and development costs | 6,000,000 | 4,000,000 | 3,600,000 | |
Unrecognized tax benefits | 0 | 0 | 0 | |
Unrecognized tax positions | 0 | 0 | 0 | |
Net revenue | 1,153,354,000 | 848,456,000 | 717,476,000 | |
Long - Lived Assets | 135,920,000 | 124,674,000 | 109,346,000 | 135,920,000 |
Settlement of contract liability | 15,000 | |||
Contract assets. | 0 | 0 | 0 | |
Contract liabilities | 200,000 | 200,000 | 300,000 | 200,000 |
North America | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Net revenue | 1,038,964,000 | 765,307,000 | 627,573,000 | |
Long - Lived Assets | 129,039,000 | 120,009,000 | 104,231,000 | 129,039,000 |
Foreign | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Net revenue | 114,390,000 | 83,149,000 | 89,903,000 | |
Long - Lived Assets | $ 6,881,000 | $ 4,665,000 | $ 5,115,000 | $ 6,881,000 |
Accounts Receivable | Customer Concentration Risk | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Number of customer | customer | 1 | 1 | ||
Accounts Receivable | Customer Concentration Risk | Customer one | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Concentration Risk, Percentage | 10% | 10.60% |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 01, 2023 | May 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Purchase price | $ 17,376 | |||
Accounts receivable | $ 2,200 | |||
Goodwill | 20,022 | $ 11,619 | ||
Southern Hydraulic Cylinder, Inc. | ||||
Business Acquisition [Line Items] | ||||
Purchase price | 17,400 | 17,376 | ||
Inventory acquired | 3,467 | |||
Accounts receivable | 2,245 | |||
Goodwill | $ 8,400 | 8,403 | ||
Property fair value | 3,000 | |||
Intangibles | 193 | |||
Acquired business contributed revenues | $ 6,000 | |||
Acquired business contributed earnings | $ 1,100 | |||
Southern Hydraulic Cylinder, Inc. | Land and Building | ||||
Business Acquisition [Line Items] | ||||
Property fair value | 2,800 | |||
Southern Hydraulic Cylinder, Inc. | Transportation Equipment | ||||
Business Acquisition [Line Items] | ||||
Property fair value | 200 | |||
Southern Hydraulic Cylinder, Inc. | Noncompete Agreements | ||||
Business Acquisition [Line Items] | ||||
Intangibles | 25 | |||
Southern Hydraulic Cylinder, Inc. | Order or Production Backlog | ||||
Business Acquisition [Line Items] | ||||
Intangibles | $ 168 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of allocations for net assets acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Sources of financing | |||
Cash | $ 17,376 | ||
Fair value of assets and liabilities | |||
Accounts receivable | $ 2,200 | ||
Goodwill | 20,022 | $ 11,619 | |
Southern Hydraulic Cylinder, Inc. | |||
Sources of financing | |||
Cash | 17,400 | 17,376 | |
Fair value of consideration transferred | 17,376 | ||
Fair value of assets and liabilities | |||
Accounts receivable | 2,245 | ||
Fixed assets | 3,735 | ||
Inventory | 3,467 | ||
Prepaid insurance | 71 | ||
Intangibles | 193 | ||
Total identifiable assets acquired | 9,711 | ||
Assumed liabilities | 738 | ||
Goodwill | $ 8,400 | $ 8,403 |
BUSINESS COMBINATIONS - Pro for
BUSINESS COMBINATIONS - Pro forma summary (Details) - Southern Hydraulic Cylinder, Inc. - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Revenue | $ 1,157 | $ 861 | $ 728 |
Earnings | $ 60 | $ 22 | $ 17 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventories, Net of Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INVENTORY | ||
Chassis | $ 29,748 | $ 18,604 |
Raw materials | 89,048 | 75,934 |
Work in process | 47,934 | 40,655 |
Finished goods | 23,077 | 18,463 |
Inventories | 189,807 | 153,656 |
Net of inventory reserves | $ 5,600 | $ 5,900 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment | ||||
Property, plant and equipment, gross | $ 217,558 | $ 202,382 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (102,486) | (90,237) | ||
Property, plant and equipment, net | 115,072 | 112,145 | $ 95,293 | $ 97,417 |
Depreciation and amortization | 13,243 | 11,762 | 11,036 | |
Depreciation expense | 13,200 | 11,800 | 11,000 | |
As reported | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, net | 112,145 | 96,496 | 98,620 | |
Adjustment | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, net | $ (1,203) | $ (1,203) | ||
Land and improvements | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, gross | 19,596 | 16,855 | ||
Buildings and improvements | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, gross | 86,346 | 83,220 | ||
Machinery and equipment | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, gross | 86,250 | 78,959 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, gross | 13,560 | 12,451 | ||
Software costs | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment, gross | $ 11,806 | $ 10,897 |
GOODWILL (Details)
GOODWILL (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
GOODWILL | |
Goodwill, beginning balance | $ 11,619 |
Goodwill, ending balance | 20,022 |
Southern Hydraulic Cylinder, Inc. | |
GOODWILL | |
SHC, Inc | 8,403 |
Goodwill, ending balance | $ 8,403 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ACCRUED LIABILITIES | ||
Accrued wages, commissions, bonuses and benefits | $ 20,847 | $ 11,370 |
Accrued sales related expenses | 5,919 | 6,310 |
Deferred revenue | 5,901 | 4,155 |
Accrued products warranty | 2,813 | 2,098 |
Other | 5,313 | 4,400 |
Total accrued liabilities | $ 40,793 | $ 28,333 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 21, 2020 | |
Line of Credit Facility [Line Items] | ||||||
Amount drew on existing credit facility | $ 15,000 | $ 45,000 | ||||
Cash and temporary investments | 29,909 | 40,153 | $ 54,332 | $ 57,521 | ||
First Tennessee Bank National Association | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility | $ 100,000 | $ 50,000 | ||||
Interest expense on credit facility | 3,400 | 1,100 | $ 100 | |||
Line of credit outstanding borrowings | $ 60,000 | $ 45,000 | ||||
First Tennessee Bank National Association | Credit facility | Minimum | Secured Overnight Financing Rate (SOFR) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable interest rate in addition to reference rate | 1% | |||||
First Tennessee Bank National Association | Credit facility | Maximum | Secured Overnight Financing Rate (SOFR) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable interest rate in addition to reference rate | 1.25% |
INCOME TAXES - Components (Deta
INCOME TAXES - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income before income taxes | |||
United States | $ 65,068 | $ 21,572 | $ 10,947 |
Foreign | 8,716 | 4,160 | 10,819 |
Income before income taxes | $ 73,784 | $ 25,732 | $ 21,766 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 14,949 | $ 3,225 | $ 1,126 |
State | 541 | 180 | 343 |
Foreign | 2,184 | 920 | 3,016 |
Total Current | 17,674 | 4,325 | 4,485 |
Deferred: | |||
Federal | 1,797 | 890 | 981 |
State | 310 | 91 | 13 |
Foreign | 74 | 80 | 32 |
Total Deferred | 2,181 | 1,061 | 1,026 |
Provision for/(benefit from) income taxes | $ 15,493 | $ 5,386 | $ 5,511 |
INCOME TAXES - Federal Statutor
INCOME TAXES - Federal Statutory Tax Rate and Income Tax Expense (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Federal statutory tax rate | 21% | 21% | 21% |
State taxes, net of federal tax benefit | 0.20% | 0.80% | 1.30% |
Excess of foreign tax over US tax on foreign income | 0.40% | 0.50% | 3.60% |
Domestic tax deductions and credits | (0.20%) | (1.30%) | (1.60%) |
Foreign Derived Intangible Income deduction | (0.60%) | (0.30%) | |
Other | 0.20% | 0.30% | 1% |
Effective tax rate | 21% | 21% | 25.30% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 307 | $ 268 |
Accruals and reserves | 3,169 | 2,058 |
Research and Development | 2,316 | 1,697 |
Other | 1,099 | 747 |
Total deferred tax assets | 6,891 | 4,770 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 10,701 | 10,989 |
Other | 260 | 11 |
Total deferred tax liabilities | 10,961 | 11,000 |
Net deferred tax asset/(liability) | $ (4,070) | $ (6,230) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
INCOME TAXES | ||
Federal net operating loss carryforward | $ 0 | $ 0 |
State net operating loss carryforward | 3,700 | 3,700 |
Unrecognized Tax Benefits | 0 | 0 |
Unrecognized tax positions | $ 0 | $ 0 |
LEASES - Lease cost (Details)
LEASES - Lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost | |||
Amortization of right-of-use assets | $ 14 | $ 22 | |
Interest on lease obligation | 1 | 1 | |
Total finance lease cost | 15 | 23 | |
Total long-term operating lease cost | $ 365 | 387 | 419 |
Total short-term operating lease cost | 368 | 592 | 493 |
Total lease cost | 733 | 994 | 935 |
Cash paid for amounts included in the measurement of lease obligation: | |||
Operating cash flows from operating leases | 365 | 387 | 419 |
Financing cash flows from finance leases | 15 | 22 | |
Right-of-use assets obtained in exchange for new operating lease obligations | 117 | 143 | |
Boniface Engineering, Ltd. | |||
Lease Cost | |||
Total lease cost | 200 | ||
Jige International S.A | |||
Lease Cost | |||
Total lease cost | $ 200 | $ 100 | $ 100 |
LEASES - Summarizes supplementa
LEASES - Summarizes supplemental balance sheet and other information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 826 | $ 909 |
Current potion of operating lease liabilities | 320 | 311 |
Long-term operating lease liabilities | 506 | 597 |
Total operating lease liabilities | $ 826 | $ 908 |
LEASES - Schedule of Weighted-a
LEASES - Schedule of Weighted-average lease term and weighted-average discount rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Weighted average remaining lease term for operating leases | 2 years 8 months 12 days | 3 years 1 month 6 days |
Weighted average remaining lease term for finance leases | 0 years | 0 years |
Weighted average discount rate for operating leases | 3.50% | 3.10% |
Weighted average discount rate for finance leases | 4% |
LEASES - Maturity of Undiscount
LEASES - Maturity of Undiscounted Cash flows of operating lease obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease Obligation | ||
2024 | $ 360 | |
2025 | 306 | |
2026 | 139 | |
2027 | 30 | |
2028 | 24 | |
Thereafter | 11 | |
Total lease payments | 869 | |
Less: Imputed Interest | (43) | |
Total operating lease liabilities | $ 826 | $ 908 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Repurchase collateral amount | $ 128.7 | $ 74.1 |
Capital Addition Purchase Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitment amount | 8.6 | 6.4 |
Software License Fee Arrangement | ||
Long-term Purchase Commitment [Line Items] | ||
Commitment amount | $ 1.4 | $ 2.6 |
SHAREHOLDERS EQUITY - (Details)
SHAREHOLDERS EQUITY - (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHAREHOLDERS EQUITY | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Undesignated preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, issued | 0 | 0 | |
Dividends paid (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
STOCK INCENTIVE PLAN - Restrict
STOCK INCENTIVE PLAN - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Unit Transactions - Shares | |||
Nonvested, beginning balance (in shares) | 160,000 | ||
Granted (in shares) | 18,835 | 160,000 | |
Vested (in shares) | (32,000) | ||
Nonvested, ending balance (in shares) | 146,835 | 160,000 | |
Restricted Stock Unit Transactions - Weighted average grant date fair value | |||
Nonvested, beginning balance (in dollar per share) | $ 29.95 | ||
Granted (in dollar per share) | 33.98 | $ 29.95 | |
Vested (in dollar per share) | (29.95) | ||
Nonvested, ending balance (in dollar per share) | $ 33.98 | $ 29.95 | |
Restricted share unit activity activity - Additional data | |||
Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax | $ 3,154 | $ 4,392 | |
Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years) | 3 years 2 months 12 days | 4 years 2 months 12 days | 0 years |
Total fair value of shares vested during the year | $ 958 | ||
Executive Officer | |||
Restricted Stock Unit Transactions - Shares | |||
Vesting period of options | 5 years | ||
Director | |||
Restricted Stock Unit Transactions - Shares | |||
Vesting period of options | 1 year | ||
Equity Incentive Plan 2016 | |||
Restricted Stock Unit Transactions - Shares | |||
Number of shares of common stock are available for issuance | 800,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic earnings (loss) per common share: | |||
Net Income (Loss) | $ 58,291 | $ 20,346 | $ 16,255 |
Weighted shares outstanding - basic (in shares) | 11,438,965 | 11,416,667 | 11,410,728 |
Basic earnings (loss) per common share (in dollars per share) | $ 5.10 | $ 1.78 | $ 1.42 |
Diluted earnings (loss) per common share: | |||
Effect of dilutive securities (in shares) | 67,995,000 | ||
Weighted shares outstanding - diluted (in shares) | 11,506,960 | 11,416,667 | 11,410,728 |
Diluted earnings (loss) per common share (in dollars per share) | $ 5.07 | $ 1.78 | $ 1.42 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE BENEFIT PLANS | |||
Period of completion of services for qualification of defined contribution plan | 90 days | ||
Defined contribution plan, percentage of employer matching contribution | 50% | ||
Defined contribution plan, percentage of participant contributions | 5% | ||
Employee contributions vesting period | 5 years | ||
Defined contribution plan, employer contribution | $ 1.6 | $ 1.4 | $ 1.2 |
CORRECTION OF PRIOR PERIOD ER_3
CORRECTION OF PRIOR PERIOD ERRORS (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Property, plant and equipment, net | $ 115,072 | $ 112,145 | $ 95,293 | $ 97,417 |
Accounts payable | 191,782 | 125,500 | 121,746 | 88,251 |
Accumulated Surplus | $ 200,165 | 150,124 | 137,998 | 129,959 |
Percent of accounts | 3.6 | |||
As reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Property, plant and equipment, net | $ 112,145 | 96,496 | 98,620 | |
Accounts payable | 119,029 | 85,534 | ||
Accumulated Surplus | 141,918 | 133,879 | ||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Property, plant and equipment, net | (1,203) | (1,203) | ||
Accounts payable | 2,717 | 2,717 | ||
Accumulated Surplus | $ (3,920) | $ (3,920) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Mar. 25, 2024 | Mar. 18, 2024 | Mar. 04, 2024 |
SUBSEQUENT EVENTS | |||
Dividends payable, declared date | Mar. 04, 2024 | ||
Dividends payable, amount per share | $ 0.19 | ||
Dividends payable, increase over the prior quarter | $ 0.01 | ||
Dividends payable, payment date | Mar. 25, 2024 | ||
Dividends payable, record date | Mar. 18, 2024 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for credit losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deduction from asset accounts: | |||
Balance at Beginning of Period | $ 1,319 | $ 1,155 | $ 1,295 |
Charged to Expense | 208 | 174 | (137) |
Accounts Written Off | (10) | (3) | |
Balance at End of Period | $ 1,527 | $ 1,319 | $ 1,155 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 58,291 | $ 20,346 | $ 16,255 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |